GENERAL FARM PROGRAM 1197 



In 1930 or 1931 there was a short corn crop. At the beginning of 

 the year general commodity prices, you remember, were trending 

 very definitely downward. Corn went up dming November and 

 December. Then it turned around and followed the general com- 

 modity prices and other grain prices down until it ended the year 

 much lower than it had started. It will adjust itself to the changing 

 condition of supply and demand within its own particular sphere. 

 Then it will turn and follow commodity prices down. 



Mr. HoEVEN. You believe, then, that if prices go down mider this 

 trial-run plan the prices of cattle will also go down? 



Mr. PiCKELL. With the biggest run of cattle coming to market in 

 the fall of the year, naturally they will go down. 



Mr. HoEVEN. Let me ask you another question. If these prices 

 on hogs and cattle go down under the proposed plan, can you tell 

 me how those prices will ever come up again, as long as the Brannan 

 plan is in force and effect? 



Mr. PicKELL. Yes, it could happen. The biggest factor in the 

 price of cattle, for instance, is the price of corn. If the corn market 

 advances, the cattle market will very soon advance. 



Mr. HoEVEN. But is it not a fact that when the price of hogs goes 

 down the price of corn will go down? Farmers are not going to feed 

 high-priced corn into low-priced hogs. 



Air. PicKELL. But suppose Dame Nature steps in like she did in 

 1935 and 1936 and causes a very short corn crop. Then your prices 

 could change. 



Mr. HoEVEN. That would be an abnormal situation; I am talking 

 about a normal situation. The thing that disturbs me is that if we 

 once get these prices down, it will be difficult to get them back up. 



Mr. PicKELL. It would take an abnormal situation to pull them 

 back up. 



Mr. HoEVEN. That is all. 



Mr. Granger. Mr. Chairman. 



Mr. Pace. Mr. Granger. 



Mr. Granger. As I understand your testimony, you are not 

 worried about the price of hogs under a trial-run plan? 



Mr. PicKELL. I am under a trial-run plan. 



Mr. Grange.r. You are opposed to that and you do not care 

 anything about the Aiken bill going into effect or if it leaves livestock 

 out entirely. 



Mr. PicKELL. Our people are opposed to Government subsidies of 

 any sort. They are opposed to Government domination of the farms. 

 They just simply want to continue as they always have, and that is 

 dependent entirely upon themselves. 



Mr. Granger. Then so far as you are concerned, we could repeal 

 the provision of the law that supports the price of hogs during 1949? 



Mr. PicKELL. That is right. 



Mr. Granger. You would like to see it done? 



Mr. PicKELL. Provided the Secretary of Agriculture will come out 

 and stop talking prices down. 



Mr. Granger. We could not put any stipulation in the bill as to 

 what he would do. I am anxious to settle this question. I will 

 introduce a bill to do that in a minute, and I would like to do it if I 

 thought that the producers of livestock think as you do. 



