GENERAL FARM PROGRAM 1199 



tion and sales in order to secure larger production payments than those 

 to which they would really be entitled. 



The committee should keep in mind that about 90 percent of this 

 country's eo;g production comes from flocks of less than 200 hens. 

 Such small flocks are very often a minor enterprise in relation to other 

 projects on the farm and a great many farmers do not know within 

 10 to 20 percent of the actual number of layers on their farms. 



We believe that egg sales would have to be checked against the 

 number of layers on each farm. To do this would require at least an 

 annual census, since hen numbers change durmg the year and from 

 year to year. A support price at a level in line with this industry's 

 reommendations will eliminate the necessity of any involved support 

 program. This industry has repeatedly urged that the Department 

 of Agriculture should support prices of egg and poultry products at 

 levels of from 60 to 90 percent of parity as determined by the Agri- 

 cultural Act of 1948. We believe this level should be so calculated 

 as to stabilize egg and poultry production at a volume in line with 

 projected consumer requirements. 



We realize this is an intricate and difficult determination and again 

 lu-ge the Congress to authorize the creation of a poultry industry 

 advisory committee to confer with the Secretary of Agriculture in the 

 determination of this level. Currently the Department of Agricul- 

 ture is bu^'ing egg products in order to support prices at 90 percent of 

 parity in response to title I of the Agricultural Act of 1948. 



To date since January 1, 1949, more than 4,300,000 cases of eggs 

 have been purchased in this program and we are told that no foresee- 

 able outlets are available for the dried eggs purchased. In the mean- 

 time, egg prices have been maintained at such favorable levels that 

 farmers are buying far more chicks than are necessary to mamtain the 

 Nation's egg-laying flocks. 



So far about 25 percent increase in chick purchases over last year 

 have occurred. Consequently, egg production in 1950 may easily 

 be increased by 5 to 15 percent and this increase is a du-ect result of the 

 present price-support program. I do not believe we can expect any 

 increase in per capita consumption of our eggs. If the Congress 

 decides to extend into 1950 title I of the Agricultural Act of 1948, I 

 can say with complete assurance that the Department of Agriculture 

 will have to buy from 15 to 20 million cases of eggs at a cost of approxi- 

 mately one-fourth of a billion dollars. This is an actual case history 

 of a price-support program which feeds upon itself because the sup- 

 ports were set at a level which insured profits to a large segment of the 

 industry. 



We of the National Poultry Producers Federation wish to bring 

 about a sound economy within the poultry industry and we therefore 

 recommend the establishment of flexible price supports to become 

 effective as of January 1, 1950. Thank you. 



Mr. Pace. Thank you, Mr. Hubbard. You wound up by saying 

 flexible. You meant from 60 to 90? 



Mr. Hubbard. From 60 to 90. 



Mr. Pace. Rather than a rigid 90 percent? 



Mr. Hubbard. Yes. It is our thought that consumption can be 

 fauly weU plotted and the price level at which eggs are supported 

 is a big factor in the volume of chicks purchased. Probably a sound 

 price-support program along that basis at 60 to 90 would be a dollar or 

 so below the cost of production, not allowing any profit to producers. 



