GENERAL FARM PROGRAM 1177 



Mr. HoEVEN. I ask unanimous consent that all members of the 

 committee may insert their remarks at this point in the record if they 

 care to reply to Mr. O'Sullivan's political speech. 



Mr. Pace. Without objection, it is so ordered. 



We will now turn to milk. 



Mr. Cotton. Before you turn to milk, I want to ask the Secretary: 

 I understand from what you just said that you have finally settled 

 the question of which comes first, the chicken or the egg. 



Mr. Pace. At least, at this hearing he put chickens last and he 

 put eggs first. 



Mr. Secretary, do you now have a support program on milk? 



Secretary Brannan. Not directly on milk, but we are now buy- 

 ing dried skimmed milk and butter in an effort to maintain a reason- 

 able relationship between the price of milk in general or dairy prod- 

 ucts in general and what would be a support level. 



Mr. Pace. Under paragraph (b) of title I of the Agricultural Act 

 of 1948, you are obligated to support milk and its products at 90 per- 

 cent of parity. Is the program you are now carrying on having that 

 effect? 



Secretary Brannan. We think it is. 



Mr. Pace. You are now in the midst of that program? 



Secretaiy Brannan. Yes, sir. 



Mr. Pace. What does it cost? 



Secretary Brannan. We are buying those commodities for resale, 

 and we have resold them as fast as we have been able to buy them. 

 So the only expense so far has been the handling charges. 



Mr. Pace. What has been the cost of the program in 1947 and 1948 

 of the support price of milk and its products? 



Secretary Brannan. None in either year. 



Mr. Pace. Are you prepared to make an estimate as to the cost of 

 carrying out the support price under the production payment plan? 



Secretary Brannan. We made an estimate, Mr. Chairman, in my 

 supplemental statement of April 25, in which we indicated that for 

 every cent of reduction it would probably cost in the neighborhood 

 of $150,000,000. 



Mr. Pace. Do you not recommend that for this year that program 

 be changed and the production-payment method be used? 



Secretary Brannan. We did so recommend, Mr. Chairman. 



Mr. Pace. If authority was granted, you would immediately change 

 the program to the production-payment method? 



Secretary Brannan. Not during the current year. 



Mr. Pace. But you would undertake it next year? 



Secretary Brannan. We would, sir. 



Mr. Pace. Do you recommend that you be given the authority to 

 undertake that on milk? 



Secretary Brannan. Yes, sir; I would like to see the authority 

 there. I am not prepared to say that if the present type of operation 

 was going along satisfactorily we would immediately resort to it. 



Mr. Pace. In fact, to make it perfectly clear, Mr. Secretary, your 

 recommendation is that you be permitted to authorize the use of either 

 the purchase program or the payment method, whichever would get 

 the best effects? 



Secretary Brannan. That is correct, sir. 



